A disruptive approach strategy to succeed in the video games market - Nintendo - p3

Satoru Iwata, Nintendo CEO, said: “While some people put their money on the screen, we decided to put ours into the game experience”, in an attempt to “not just improve the market, but disrupt it.”
 
 Nintendo’s Wii strategy did not follow anymore the classical success rules that normally are focused on beating the competition but tried to write new conventions where the high-definition graphics or cutting edge technologies do not represent the only legitimate credentials. With the creation of Wii, Nintendo concentrated on finding new customers and on enlarging the market pie instead of fighting to get a larger slice of it. Nintendo understood that in order to create a Blue Market, its strategy has to be changed radically. 
 
 That is why they improved the game play to be more user-oriented by intuitive involvement of the body and by using the wireless controller that make the game experience more realistic and pleasant. Developing different type of games (fitness & sports, social and family) Nintendo does “encourage people around the world to play video games regardless of their age, gender or cultural background”.
 
 Wii highlighted the role of the hardware accessories and reduced or even eliminated the HD components or the expensive architectures of the consoles succeeding to enlarge its market by promoting a hardly to compete price for Wii. With lower production costs, Wii permits small developers as well as small companies to produce and publish games for it. 
 
 What will be the Nintendo’s next move? I hope a Re-revolution! I hope that they will “zig” when the competition is “zagging”.
 
 Becoming realistic, I would say that Nintendo needs to remember the traditional gamers that added revenue to the company for a long time. Even if traditional gamers found the controller really innovative, they were extremely disappointed by the games and “substandard” graphics. So, I think that Nintendo should invest in better interfaces, higher resolution graphics and sophisticated games. By launching the on-line Mii Channel they have already moved in that direction. The Mii System permits to “invent” 3-D avatars on the Wii system. Based on the same idea, the success of the movie “Avatar” started a new trend that Nintendo can take advantage of. With Mii Channel the users will probably create avatars that should be able to be “transferred” from game to game or platform to platform, including the on-line environments.
 
 On the other hand, Nintendo needs to pay attention to the competition that did recently reacted. Microsoft spoke about its new “Natal” motion capture concept.
 
 If all those aspects will be taken into consideration I think that Nintendo can win not only one battle but the all war. 
 
 Cheers
 ― Claudiu

Image from Nintendo Wii. 
 
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